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ALCO Stores, Inc. Message Board

pgace1234 7 posts  |  Last Activity: 5 hours ago Member since: Nov 12, 2012
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  • pgace1234 pgace1234 5 hours ago Flag

    I could be reading into things but my educated guess is that Alco is about to experience some "change". The background of the Board tells me that some significant shareholders are now in control and will want too push for a good return, whether that comes in the form of an increased stock price from reorganization and organic growth or whether the increased price is from a sale of the company after the Alco brand is "fixed".

    I will say this, I feel in good hands as a shareholder going forward.

  • pgace1234 pgace1234 5 hours ago Flag

    Lets start with David Pointer. He is co-Executive Director of The Activist Association who is a company that is retained to take over Boards, change management and prepare the company for sale/restructuring. On the company's website it has examples of some of their success stories, all of which resulted in an increased stock price and some in the takeover/sale of the company. I believe that The Activist Association was involved here and Mr. Pointer got a seat on the Board because of his success yesterday and/or to voice a shareholder's voice.

    Stanley Latacha and William Lechtner both work for Ignite Venture Partners as advisors. They may have worked together before at Petco. Ignite invests in value and growth companies. Possibly Ignite sees value in Alco.

    Robert Sarlls is a principal at Food Strategies who has expertise in M&A based on his long resume.

    Dilip Singh, Mark Stolper (and Charles Gillman) are the most interesting bunch and may be key figures going forward. Mr. Singh has a heck of a resume with telecommunication companies and is currently a CEO of a healthcare service company. It appears he has a history of being part of companies that get taken over. Mr. Stolper is CFO of RadNet that provides medical diagnostic imaging. But what is impressive is his past in investment banking, venture capital investing and M&A. Most importantly may be Charles Gillman. He is not a Director but at one point was being considered. He runs "family"offices which find and invest in public companies that require operational enhancement to grow capital allocation. He has a history of being a large shareholder in companies and taking over Boards. All three of these Directors are also Directors of Oti which is a company that specializes in cashless payment solutions.

    John Climaco is a CEO of a biotech firm and is a litigation lawyer. I am not quite sure where he fits in.

    I could be reading into things but my educated guess is that Alco is about to experience some "cha

  • Yesterday, August 29th, 2014, at Alco's postponed annual meeting, shareholders successfully voted out the ond BOD and successfully voted in a new BOD.

    I keep wondering what's next for this company that appears so undervalued and mismanaged.

    I suspect that Alco's management, mainly Richard Wilson, will be replaced soon enough (unless he agrees to be a pawn to the new BOD and they like him).

    But then what.

    I've been doing some research on each of the new Directors that have been elected and believe I may have stumbled upon the answer.

    Let me begin with my conclusion first: I believe that the new Board and potentially new management have been hired by Alco's largest institutional and/or activist shareholders. For what you ask? To first turn the company around (or at east least the numbers/image). This should not be extremely difficult to do given the talent and experience of the new Board and the horrible numbers management have been producing over the past several quarters. This in turn will increase the stock price to reasonable/respectable levels and raise some equity firm's eyebrows. The next goal will be to sell, shop and/or attract a takeover at a higher premium.

    Why do I think this based on my research?

    The new Board consists of: Robert Sarlls (Chairman), John Climaco, Stanley Latacha, William Lechtner, David Pointer, Dilip Singh and Mark Stolper.

  • Reply to

    One more day

    by bobjones476 Aug 28, 2014 11:55 PM
    pgace1234 pgace1234 Aug 29, 2014 12:00 AM Flag

    Amen to that!

  • pgace1234 pgace1234 Jul 31, 2014 10:08 AM Flag

    Scenarios: 1. Management LBO, 2. Negotiation between BOD/management and. CAS to keep jobs with conditions or leave for larger green parachutes, 3. BOD shop company privately for higher bid to screw CAS, 4. Possibly a combo of the above - convince some large holder(s) to financially assist them with LBO, 5. Trigger rights agreement to dilute acquiring person.

    I suspect they will try 2 above if the voting numbers are right.

  • pgace1234 pgace1234 Jul 30, 2014 7:52 PM Flag

    This BOD have chosen some interesting tactics. They are there to protect the shareholders and not their jobs. Their actions are highly questionable and will be scrutinized. I'm surprised there hasn't been a management LBO. Possibly the BOD is buying some time to see if management can come up with financing.

  • pgace1234 pgace1234 Jul 30, 2014 7:48 PM Flag

    They can but the question is whether their actions can be successfully defended. The BOD will likely be sued

ALCS
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